2009
10.14

Distinction between Financial Management and Corporate Finance

Category: finance theory / Tag: , , ,  / Add Comment

It is not feasible to draw a perfect line between Financial Administration and Corporate Finance. The Finance Manager will be forced to perform in both areas. However, we argued that the Financial Management is more focused on tasks of day to day control of company operations.

For their part, finance a little more focus to the realization of tasks of a transcendental (ie strategic) for the company, tasks are not performed on a daily basis. Here I propose the agenda for a financial management course:

  1. Purpose and scope of the Financial Administration
  2. Reports of results: the financial statements.
  3. Analysis of reasons.
  4. Utility Planning: Types of costs and analysis. Breakeven.
  5. Planning and Financial Control: budgets
  6. Managing current assets: cash, accounts. Receivable, accounts payable, inventory management.
  7. Treasury: Management of capital in turn.
  8. Treasury: sources and forms of short-term financing. Money markets and instruments.
  9. Treasury: sources and forms of long-term financing. Capital markets and instruments.
  10. Domestic investment techniques: the capital budget.
  11. Financial management of SMEs.
  12. Financial management of cooperatives.

We now propose an agenda for a Corporate Finance courses:

  1. Legal Structure of a Corporation: The SACA
  2. Agency Theory and Theory of the Firm (The Financial G.).
  3. Capital Structure (Selection of M & M).
  4. Cost of Capital and financial leverage (WACC).
  5. Long-Term Financing (Technical Issue of shares and debt).
  6. Venture capital funding (Venture Capital)
  7. Debt Re-structuring. (Guidance for the re-structuring).
  8. Financial Hardship (Financial Reengineering).
  9. Mergers and Acquisitions (with other corporations).
  10. Dividend Policy.
  11. The Model Financial Corporation (Planning F).
  12. Ethics and social responsibility of the Corporation.

Note that, the mind set of the executive to perform administrative tasks or the mind set to practice finances is a little different, to say the least. The student can complete their courses with an administrator or mentality with a willingness to finance. That’s already a personal decision.

  • Share/Bookmark

1 comment so far

Add Your Comment
  1. you insurance said: 2010.03.03 05:51

    Thank you for current firing a couple of issues here. perhaps it would have been timely for some of our major banks to have been more prudent in their financial planning.

Your Comment